Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — FY2024 Earnings Presentation
48 slides from Edelweiss Financial Services's earnings presentation, May 14, 2024
Slide 1: Exchange filing cover letter: Earnings Update
EW/Sec/2024-25/39 May 14, 2024 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Earnings Update Please find enclosed her
Slide 2: Earnings update – Quarter and Year ended Mar 24
Edelweiss Financial Services Limited Earnings update – Quarter and Year ended Mar 24
Slide 3: Contents
Contents 1 Overview for year ended Mar 24 3 2 Performance highlights 6 3 Business performance 22 4 Governance & corporate responsibility 40 Please refer to the detailed business update filed for Zuno General Insurance (formerly Edelweiss General Insurance) 2
Slide 4: Overview Year ended Mar 24
Overview Year ended Mar 24 Ge Edelweiss Ideas create, values protect
Slide 5: Edelweiss at a glance – year ended Mar 24
Edelweiss at a glance – year ended Mar 24 Net Worth Ex-Insurance PAT BVPS INR 6,216 Cr INR 661 Cr INR 48 (FV ₹1) Net Debt Liquidity as a % of Debt INR 13,090 Cr 16% 4
Slide 6: Diversified with seven high-quality businesses
Diversified with seven high-quality businesses Edelweiss Financial Services Ltd (EFSL) Alternative Asset Housing General Life Mutual Fund Reconstruction NBFC Asset Mgt Finance Insurance Insurance Edelweiss Edelweiss Edelweiss Asset ECL Finance Nido Home Zuno General Edelweiss Alternate Asset Reconst
Slide 7: Performance Highlights
Performance Highlights (e. Edelweiss Ideas create, values protect
Slide 8: Performance highlights – year ended Mar 24
Performance highlights – year ended Mar 24 1 Healthy Profitability: Ex-Insurance PAT at INR 661 Cr; Consol PAT grew by 22% YoY Facilitated by robust growth in key business metrices 2 Strong scale up in Alternative Asset Management, Mutual Fund and General Insurance Alternative FPAUM up 39% YoY, MF E
Slide 9: Healthy profitability: Ex-Insurance PAT at INR 661 Cr
1 Healthy profitability: Ex-Insurance PAT at INR 661 Cr PAT for the year in INR Cr Alternative Asset Asset EFSL Consol Mutual Fund Management Reconstruction 421 355 210 318 344 38 159 18 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 22% YoY 32% YoY 112% YoY 12% YoY 8
Slide 10: Earnings distribution across businesses
1 Earnings distribution across businesses INR Cr Quarter Ended Year Ended Business Mar 24 Mar 23 Mar 24 Mar 23 Alternative Asset Management 74 43 210 159 Mutual Fund 6 0 38 18 Asset Reconstruction 99 93 355 318 NBFC 45 37 150 139 Housing Finance 10 3 19 16 General Insurance (29) (26) (123) (125) Lif
Slide 11: Robust growth in key business metrices (1/3)
1 Robust growth in key business metrices (1/3) Alternative Asset Management AUM at INR 54,700 Cr, up 18% YoY; FPAUM at INR 32,200 Cr, up 39% YoY Conferred “Market Award India Category” in Asian Investor Asset Management Award Mutual Fund AUM at INR 1,27,000 Cr, up 21% YoY; Equity AUM at INR 43,700 C
Slide 12: Robust growth in key business metrices (2/3)
1 Robust growth in key business metrices (2/3) NBFC Disbursed INR 420 Cr in Q4; INR 1,050 Cr in the year, 80% via CLM Wholesale book reduced by 42% YoY to INR 4,150 Cr Housing Finance Disbursed INR 547 Cr in Q4; INR 1,325 Cr in the year, 32% via CLM Partnership with State Bank of India continues to
Slide 13: Robust growth in key business metrices (3/3)
1 Robust growth in key business metrices (3/3) General Insurance Fastest growing in the industry, GWP of INR 255 Cr in Q4, up 107% YoY; INR 851 Cr in the year, up 54% YoY Issued 1.4 lakh policies in Q4, up 45% YoY; 4.3 lakh in the year Life Insurance Gross Premium of INR 805 Cr in Q4, up 19% YoY; IN
Slide 14: Strong scale up in Alternative, Mutual Fund and General Insurance
2 Strong scale up in Alternative, Mutual Fund and General Insurance in INR Cr Alternative Asset Mgt Mutual Fund General Insurance FPAUM Equity AUM Gross Premium 43,700 851 32,200 27,100 552 23,200 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 39% YoY 61% YoY 54% YoY 13
Slide 15: Customer assets grew by 13% YoY
3 Customer assets grew by 13% YoY in INR Cr Customer Alternative Asset Mgt Mutual Fund Assets AUM AUM 2,13,290 1,27,000 54,700 1,88,600 1,05,000 46,500 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 13% YoY 18% YoY 21% YoY 14
Slide 16: With a 35% YoY expansion in customer reach
3 With a 35% YoY expansion in customer reach in Lakhs General Insurance Customer Reach Mutual Fund Folios Customers 76 51 15.5 56 37 11.7 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 35% YoY 32% YoY 37% YoY 15
Slide 17: On track on key priorities
4 On track on key priorities 1 Scale up profitability in Alts and MF Alts PAT 32% YoY MF PAT 112% YoY MSME HFC 2 Grow retail credit via co-lending model Disbursement 3x YoY Disbursement 2x YoY Reduction in losses in both LI and GI; 3 Insurance break even by FY27 PAT improved by 14% YoY 4 Focused red
Slide 18: EAAA minority stake sale update
4 EAAA minority stake sale update Process initiated upon significant inbound investor interest Plan a stake sale of 10-20%; expect to raise INR 1,500-2,000 Cr The stake sale will enable debt reduction and establish the market value of the business Process Update • Finalization of investment ba
Slide 19: Robust balance sheet with well capitalised businesses
5 Robust balance sheet with well capitalised businesses Business Metric Value NBFC Capital Adequacy 42.4% Housing Finance Capital Adequacy 39.1% Asset Reconstruction Capital Adequacy 60.3% General Insurance Solvency Ratio 172% Life Insurance Solvency Ratio 179% 18
Slide 20: Net debt reduced by INR 3,270 Cr in the year
5 Net debt reduced by INR 3,270 Cr in the year Net Debt (INR Cr) INR Cr Business Mar 24 20% NBFC 5,295 16,360 Housing Finance 1,685 13,090 Alternative Asset Management 475 Asset Reconstruction 1,975 Corporate 8,790 Gross Debt 18,220 (Less) Liquidity 2,880 (Less) Liquid Investment* 2,250 Net Debt 13,
Slide 21: Cash flow plan
5 Cash flow plan INR Cr Apr 24 to Mar 25 Opening Available Liquidity (A) 2,900 Inflows Expected Inflows 8,800 Fresh Borrowings 2,400 Total Inflows (B) 11,200 Outflows Repayments 6,200 Disbursements 4,800 Total Outflows (C) 11,000 Closing Available Liquidity (A+B-C) 3,100 20
Slide 22: Assets in each tenor range adequately cover liabilities
5 Assets in each tenor range adequately cover liabilities INR Cr Assets Liabilities Excess / (Gap) Up to 1 year 12,500 10,800 1,700 1-3 years 10,600 10,300 300 3 years+ 10,000 5,900 4,100 21
Slide 23: Business Performance
bee Business Performance (e. Edelweiss Ideas create, values protect
Slide 24: Alternative Asset Mgt: Business performance snapshot
Alternative Asset Mgt Alternative Asset Mgt: Business performance snapshot Key Metrics for the quarter Business Update • AUM grew by 18% YoY to INR 54,700 Cr AUM (INR Cr) 54,700 • Fee Paying AUM at INR 32,200 Cr, up 39% YoY Fee Paying AUM • India Special Assets Fund III final closure at INR 11,000 C
Slide 25: Alternative Asset Mgt: Financial performance snapshot
Alternative Asset Mgt Alternative Asset Mgt: Financial performance snapshot INR Cr Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 54,700 46,500 54,700 46,500 Fee Paying AUM 32,200 23,200 32,200 23,200 Equity 763 614 763 614 Net Revenue 210 118 599 396 Opex 128 71 3
Slide 26: Alternative assets overview
Alternative Asset Mgt Alternative assets overview AUM – Strategy wise Fee Paying AUM – Strategy wise AUM – Geography wise 28% 43% 46% INR 54,700 Cr INR 32,200 Cr INR 54,700 Cr 54% 57% 72% Credit Real Assets Credit Real Assets Offshore Domestic 25
Slide 27: Mutual Fund: Business performance snapshot
Mutual Fund Mutual Fund: Business performance snapshot Key Metrics for the quarter Business Update • AUM grew by 21% YoY to INR 1,27,000 Cr; market share of AUM (INR Cr) 1,27,000 2.37% as on Mar 24 • Equity AUM at INR 43,700 Cr, up 61% YoY Equity AUM • Total net inflows – 43,700 (INR Cr) o INR 1,300
Slide 28: Mutual Fund: Financial performance snapshot
Mutual Fund Mutual Fund: Financial performance snapshot INR Cr Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 1,27,000 1,05,000 1,27,000 1,05,000 Equity AUM 43,700 27,100 43,700 27,100 Equity 240 200 240 200 Revenue 78 43 255 168 Opex 72 43 215 150 Profit After Tax
Slide 29: Robust growth in AUM and customer base
Mutual Fund Robust growth in AUM and customer base MF Equity AUM (INR Cr) MF Debt AUM (INR Cr) 43,700 82,700 75,900 55,400 25,800 27,100 Mar 22 Mar 23 Mar 24 Mar 22 Mar 23 Mar 24 SIP Book (INR Cr) Active Folios (# in Lakhs) 234 15.5 11.7 135 150 9.7 Mar 22 Mar 23 Mar 24 Mar 22 Mar 23 Mar 24 Growing
Slide 30: Asset Reconstruction: Business performance snapshot
ARC Asset Reconstruction: Business performance snapshot Key Metrics for the quarter Business Update • Recoveries – Equity (INR Cr) 3,150 o INR 2,208 Cr in the quarter o INR 9,416 Cr in the year, up 25% YoY AUM (INR Cr) 31,590 • Debt assets acquired – Capital employed o INR 455 Cr in the quarter 4,49
Slide 31: Asset Reconstruction: Financial performance snapshot
ARC Asset Reconstruction: Financial performance snapshot INR Cr Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 31,590 37,100 31,590 37,100 Capital Employed 4,495 4,700 4,495 4,700 Wholesale assets 3,831 3,930 3,831 3,930 Retail assets 663 770 663 770 Equity 3,150 2
Slide 32: NBFC: Business performance snapshot
NBFC NBFC: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 3,487 • Partnership with Central Bank of India, IDFC First Bank and Standard Chartered Bank continues to deepen AUM (INR Cr) 6,924 • Disbursed – o INR 420 Cr in the quarter o INR 1,050 Cr in the year
Slide 33: NBFC: Financial performance snapshot
NBFC NBFC: Financial performance snapshot INR Cr Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 6,924 7,847 6,924 7,847 Gross Loan Book 2,058 4,429 2,058 4,429 Gross Revenue 385 401 1,382 1,680 Net Revenue 160 135 474 597 Opex 82 62 289 309 Credit Cost 16 33 (18) 1
Slide 34: Wholesale reduction on track
NBFC Wholesale reduction on track ECLF wholesale loan assets (INR Cr) 60% 10,370 4,150 1,500 Mar 22 Mar 24 Mar 26E Expect momentum to continue with planned reduction 33
Slide 35: Housing Finance: Business performance snapshot
Housing Finance Housing Finance: Business performance snapshot Key Metrics for the quarter Business Update • Partnership with State Bank of India continues to deepen Equity (INR Cr) 815 with ongoing disbursals • Disbursed – AUM (INR Cr) 3,962 o INR 547 Cr in the quarter o INR 1,325 Cr in the year; 3
Slide 36: Housing Finance: Financial performance snapshot
Housing Finance Housing Finance: Financial performance snapshot INR Cr Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 3,962 4,115 3,962 4,115 Gross Loan Book 3,105 3,069 3,105 3,069 Gross Revenue 128 115 466 445 Net Revenue 52 37 165 149 Opex 37 35 136 123 Credit C
Slide 37: General Insurance: Business performance snapshot
General Insurance General Insurance: Business performance snapshot Key Metrics for the quarter Business Update • Fastest growing player with gross direct premium income Equity (INR Cr) 249 (GDPI) growth of 56% YoY for the year • Gross written premium (GWP) – o INR 255 Cr in the quarter, up 107% YoY
Slide 38: General Insurance: Financial performance snapshot
General Insurance General Insurance: Financial performance snapshot INR Cr Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 Gross Written Premium 255 123 851 552 Net Premium Income 119 85 404 307 Investment Income & Other 67 27 200 81 Income Total Income 186 112 604 388
Slide 39: Life Insurance: Business performance snapshot
Life Insurance Life Insurance: Business performance snapshot Key Metrics for the quarter Business Update • Gross premium – Equity (INR Cr) 719 o INR 805 Cr in the quarter, up 19% YoY o INR 1,926 Cr in the year, up 15% YoY Individual APE (INR Cr) 224 • AUM at INR 7,990 Cr, up 20% YoY #Policies Issued
Slide 40: Life Insurance: Financial performance snapshot
Life Insurance Life Insurance: Financial performance snapshot INR Cr Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 Gross Premium 805 679 1,926 1,676 Net Premium Income 795 669 1,888 1,640 Investment Income & Other 240 55 1,060 360 Income Total Income 1,036 724 2,948 2
Slide 41: Governance & Corporate Responsibility
Governance & Corporate Responsibility
Slide 42: 6 Member Board with 3 Independent Directors
6 Member Board with 3 Independent Directors Mr. Ashok Kini Independent Director • Former Managing Director (National Banking Group) State Bank of India • Served as an advisor to the Thorat Committee on Financial Inclusion at RBI • 35 years of banking experience Dr. Ashima Goyal Independent Director
Slide 43: Significant institutional ownership
Significant institutional ownership Shareholding Pattern as on Mar 31, 2024 Key Shareholders Percent 1 TIAA CREF Funds 7.2% Employee Trust 2 Pabrai Investment Funds 5.9% DIIs, Non 4.8% Promoter Group 3 LIC 2.6% Institutions & Others 4 Vanguard Group 2.4% 32.8% 30.1% 5 Miri Capital Management 2.1% 6
Slide 44: Our contribution to building a more sustainable tomorrow
Our contribution to building a more sustainable tomorrow Under the leadership of EdelGive Foundation, we have… INR 1,318 Cr mobilized Partnered with over 278 Assisted over 60% of EdelGive’s Ensured long term through commitments high caliber NGOs NGO partners to grow at a CAGR association with averag
Slide 45: Our investment in communities
Our investment in communities EdelGive Foundation’s commitment to investing in communities 85 Districts Sustainable Women across 13 States Quality Education Livelihoods Empowerment 20 lakh children impacted 2.48 lakh Individuals trained 2.44 lakh women supported 31,000 schools reached 1,832 watershe
Slide 46: Trusted partner: EdelGive funding partners & networks
Trusted partner: EdelGive funding partners & networks Foundations, Corporates and HNIs partner with Edelgive Platform for their philanthropic allocation 45
Slide 47: Safe Harbour
Safe Harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Ltd. or any of its subsidiaries and associate companies (“Ed
Slide 48: Safe Harbour
Safe Harbour Slide 4: Net worth includes MI, investment in CCD by CDPQ of INR 166 Cr, Ex-Insurance PAT is post MI Slide 4,7,8,9: Ex-Insurance PAT is post-MI; Business PATs are pre-MI Slide 4,19: Debt includes accrued interest, liabilities on market linked debentures and excludes CBLO, CDPQ CCD and s
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